Raghav Chadha: One of the tweets by Aam Aadmi Party’s Raghav Chadha triggered a serious debate over the country’s tax structure, underlining the increase in the burden on the middle class. The AAP leader drew attention to the fact that personal income tax collections have crossed corporate tax collections-a development that he felt was symptomatic of the greater problem of economic inequality.
Personal Income Tax Now Exceeds Corporate Tax – Raghav Chadha
The tweet by Raghav Chadha on Income Tax reads, “An image that stings: Personal income tax now exceeds Corporate tax. Today in India, taxes paid by less than 3% of our adult population (individuals) is more than taxes paid by all companies combined. The middle class is being systematically crushed—squeezed dry, left without support, and just one hospital bill away from poverty.”
This statement comes with a graphical representation of data from India Today, showing that the income tax receipt rises in comparison to corporate tax over several years. In fact, such data describes how the middle-class is now increasingly bearing the financial burden of an individual taxpayer while contributing more to the national exchequer than the country’s corporate sector.
Personal Income Tax Receipts Surge Beyond Corporate Tax
The figures are telling. From ₹ 556,876 crore in 2019-2020, corporate tax collections rose to ₹ 712,037 crore in 2021-2022, and ₹ 825,834 crore in 2022-2023 Revised Estimate. The increase is carried forward as the projection for 2023-2024 and 2024-2025 is ₹ 922,675 crore and ₹ 1,042,830 crore, respectively.
On the other hand, the actual rise was even greater for personal income tax collections. Receipts under the head were ₹492,654 crore in 2019-2020 but reached ₹696,243 crore in 2021-2022. The Revised Estimate for 2022-2023 reveals a collection of ₹833,260 crore, with increases meant at the Revised Estimate for 2023-2024 of ₹1,022,325 crore and the Budget Estimate for 2024-2025 of ₹1,156,000 crore.
Middle Class Shoulders Disproportionate Burden
The criticism by Raghav Chadha reflects a growing concern by many that the middle class is being asked to carry too heavy a share of taxation while corporations enjoy a raft of tax breaks and exemptions. He points out that, for individuals, especially middle-income ones, who pay a heavy amount, companies have numerous concessions. This has subsequently thrown up a lot of debate over whether India’s tax system is indeed fair in view of the fact that the middle class is continuing to bear the rising costs of living, healthcare, and education with no support from the government.
His statement also echoes the plight of the middle class: While they pay much in nation-building revenues, they remain often on the brink of a financial crisis. The warning by Chadha-a fact for many who have to deal with high treatment costs-is that the middle class is “just one hospital bill away from poverty.”.
While debates on tax reforms go on, a tweet by Chadha says it all: the urgency of reforming India’s lopsided tax structure so that the burden is shared more equitably and not left to be carried by the middle class alone.
